8 Reasons Why You Should Buy Life Insurance Before Your 30s

Life Insurance

It can be a great time to buy life insurance when you are young. You are in the age where you are in good health, and you are likely able to purchase affordable coverage with a term life insurance policy. 

You are also probably at a point wherein you have a family member who is financially dependent on you. Thus, you will need some emergency fund that you can use in case you lose your job.

Therefore, buying life insurance in your 30s is also one of the most practical and affordable times to secure coverage. Here are the eight reasons why you should be buying life insurance at this age:

People Depend on You

The most obvious reason why you should get a life insurance policy is a growing family to take care of if you pass away.

Without your income, how could your loved ones maintain their current lifestyle without experiencing financial stress?

Even if you are unattached and single, you are not getting off scot-free yet. You also have to think about your aging family members.

What if your parents or other family members have serious health conditions? If they are dependent on your income, what will they do without you? 

While thinking about these scenarios can be scary, you can still take steps today to provide financial support to your loved ones after you are gone. 

You Have Other Debt

In your 30s, you’re most likely in debt. Think about your student loan debt, mortgage debt, consumer debt, and car loans.

If you unexpectedly pass away, those debts won’t magically disappear. It usually depends on the kind of debt and if you have a consigner on loan. 

So, let’s say you and your partner borrowed money together to purchase a new home. Your partner will be the one responsible for paying for the mortgage if you die. Meaning, if you have outstanding debts with cosigners, you should consider buying life insurance so that you can help them pay off those loans.

It’s vital to think about the things that your loved ones might be on the hook for if something happens to you. 

To Avoid Medical Hurdles

Your health plays a huge role in your ability to get a life insurance policy. Ideally, healthier adults pay lower because they’re considered less risky by the insurer. That’s why insurers usually require applicants to undergo a medical underwriting process. 

The longer (and much older) you get before applying for life insurance, the greater the chances that you’ll also be developing health issues that might cause you to pay a higher rate for the coverage. Worse, you might no longer be insurable. 

Therefore, if you require life insurance, you should lock in an affordable rate while you’re young and healthy. 

You Have a Stable Income

If you are already in your 30s, you are probably done with your education and have a stable job.

So, now is the best time to set aside a couple of extra bucks per week and invest in a life insurance policy. Not to mention that your premium will not probably cost that much, as you are still considered young.

You May Have Just Started Your Business

In your 30s, it is also highly likely that you have started a small business or taken out a small business loan.

While having your own business is an exciting prospect, you might lose all of it if you are not there anymore. 

A life insurance policy protects your family from whatever financial burden losing business can bring, especially if your business has debt.

You Could Save Money

The financial protection that you can provide your loved ones makes life insurance worth it.

As we mentioned earlier, the price of life insurance is still quite affordable if you buy it in your 30s. The amount that you pay for life insurance is determined by several factors, including your age. 

Life Insurance can be Affordable

Getting life insurance in your 30s is super affordable. Generally, the younger and healthier you are, the less you’ll likely pay for a hefty insurance premium. 

Purchasing life insurance in your 30s can be an absolute steal, especially if you’re in the market looking for a life insurance policy.

According to ServicePros Life Insurance Brokers Auckland, you could also lock down that rate the next decade or so when your family and loved ones are most vulnerable.

Meaning, at a relatively low cost, you could pay off a good amount of debt.

Retirement is Years Away

Although you might have another 30 or 40 years before you retire, buying life insurance now can be an excellent choice. 

In the years leading towards your retirement, you have probably managed to grow your assets and savings. But if you are in your 30s and something happens to you unexpectedly, then it could be a great financial burden to your bereaved family members. 

According to data by the National Funeral Directors Association, memorial and funeral services alone costs around $8,000. That is a scary number, something that most people do not even consider!

Over to You

Life insurance is not one of those things people think about when they get older. Young people, especially in their 30s, assume that they have time to deal with the issue later. 

But as we have mentioned, life insurance should be part of your overall financial plan. The sooner you get that plan into action, the greater the benefits you reap. 

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